Oracle Just Sold $10 Billion of Stock at $116 a Share. Is the Stock a Buy at That Price?

Oracle raised its full $20 billion capital commitment (split between $10B in stock at $116/share and $10B in bonds) in just five days, adding ~3% dilution to shareholders. While the stock price appears reasonable at 10x fiscal 2028 earnings for a ~30% revenue growth company, Oracle faces significant headwinds: capital spending of $28.5B in Q1 far exceeds the $20B raise, debt stands at $125B with rising interest costs, and positive free cash flow isn't expected until late fiscal 2028.